Adopting a simplified Total Cost of Quality model for demonstrating the value of the quality management function

LONDON, UNITED KINGDOM, January 30, 2023 /EINPresswire.com/ -- In an article published on Business Reporter, Gerben de Haan, Chief Product Officer and co-founder of AlisQI explains how the complexities of assessing the quality management function leave most of the costs invisible, as well as what the right approach is for companies who want to calculate the impact of quality. Although we are seeing a shift in quality assessment from detecting poor quality to preventing it from happening, old beliefs about quality being a cost centre die hard. To quantify the true value that quality management can bring to the bottom line, not only visible costs such as the ones incurred by rework and addressing customer complaints but also less obvious ones – the demotivation of staff and reputational damage – need to be taken into account.

Val Feigenbaum’s PAF model and his segmentation between good quality and poor quality provide a good start for calculating the optimal cost of quality. The costs for good and poor quality can be segmented into categories of prevention and appraisal, and the cost of external and internal failures, respectively. The quality optimum is where the lines of the cost of good quality and that of poor quality intersect. Breaking down the Total Cost of Quality into the categories used by the PAF model can generate more than 30 different quality management activities for any mature manufacturer. To make it more practical, it’s helpful to divide quality management activities into 3-5 bigger topics per category. This will highlight the distribution of costs and will help quality leaders build a solid business case for quality management.

To learn more about the practical use of the model, read the article.

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About AlisQI

AlisQI is a no-code Quality Management system which empowers manufacturing companies to transform their operations with easy-to-implement, cloud-based software. This data-driven approach to Quality Management allows manufacturers to unlock their factory’s full potential, and become more profitable, smart, and fully integrated.

https://www.alisqi.com/en/

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